If you are currently selling products or services that generate $200,000 and your plan is to achieve a 20% increase in sales, make sure that your Google Ads budget has an equal increase or a specific plan to generate additional low click cost activity such as in the Display network.
It is crucial that your ad spend be increased to help your program achieve success. Many clients will set a Google Ads budget and then not do a yearly review . It is a good plan to every January review your last year ad expenses, gross sales, sales attributable to Google Ads and your growth plan for the next year.
At the minimum, I would encourage a 10% increase in your Google Ad Spend budget if you have been successful in having Google Ads drive phone calls, emails, and other beneficial actions on your website.
If you need help with your Google Ads plan and want to jump start activity in 2019, I invite you to visit our website to see if our services would be a good match for your needs.
Often in strange economic times a business may need to trim back Google Ads budgets. We are definitely in one of those strange periods where interest in services appears to be high, but customers are not moving into conversions.
The stock market and drama within the federal government have created a climate of “wait and see”. But advertisers are working to fiercely compete in Google Ads for the available clicks even if customers are not moving to buy.
If and when you have to cut back your advertising budget; do it smartly based on conversions and value to your business.
First, sort your data for a longer period than 30 days. I will usually use a 6 month period. Note the conversions of each campaign to the total as a percentage. Then decide on the new total 30 day ad spend you can live with. Divide that number by 30.4 to arrive at your daily ad spend budget.
Multiply your daily budget by the conversion percent of each ad group to arrive at your new campaign budget. Then look to do a reality check. If you’ve got remarketing at less than $10 a day Google really will not serve that program. If you have some campaigns at $10 or $15 a day but your average cost per click is $5, you will get very little activity for that program.
Instead consider grouping some of those low budget items into a shared budget to try to help Google be able to serve your programs that you have put on a diet.
Remember, big changes to your budget will take about 7 to 14 days for Google to adjust to again. Be patient to see results at your new lower budget.